Reportable Segments

12 Months Ended

Sep. 27, 2015

Reportable Segments

Reportable Segments

19.         Reportable Segments

              Beginning in the first quarter of fiscal 2015, we reorganized our ongoing operations to better align them with our markets, resulting in two renamed reportable segments. We now report our water resources, water and wastewater treatment, environment and infrastructure engineering activities in the WEI reportable segment. Our RME reportable segment includes our natural resources, energy, waste management, remediation, utilities and international development services. We report the results of the wind-down of our non-core construction activities in the RCM reportable segment. Prior year amounts for reportable segments have been revised to conform to the current-year presentation.

              Our reportable segments are described as follows:

              WEI:    WEI provides consulting and engineering services worldwide for a broad range of water and infrastructure-related needs in both developed and emerging economies. WEI supports both public and private clients including federal, state/provincial, and local governments, and global and local commercial and industrial clients. The primary markets for WEI's services include water resources analysis and water management, environmental restoration, government consulting, and a broad range of civil infrastructure master planning and engineering design for facilities, transportation, and regional and local development. WEI's services span from early data collection and monitoring, to data analysis and information technology, to science and engineering applied research, to engineering design, to construction management and operations and maintenance.

              RME:    RME provides consulting and engineering services worldwide for a broad range of resource management and energy needs. RME supports both private and public clients, including global industrial and commercial clients, U.S. federal agencies in large scale remediation, and major international development agencies. The primary markets for RME's services include natural resources, energy, remediation, waste management, utilities and international development. RME's services span from early data collection and monitoring, to data analysis and information technology, to science and engineering applied research, to engineering design, to construction management and operations and maintenance. RME supports EPCM for full service implementation of commercial projects.

              RCM:    We report the results of the wind-down of our non-core construction activities in the RCM reportable segment. The remaining work performed in this segment will be substantially complete by the end of fiscal 2016.

              Management evaluates the performance of these reportable segments based upon their respective segment operating income before the effect of amortization expense related to acquisitions and other unallocated corporate expenses. We account for inter-segment sales and transfers as if the sales and transfers were to third parties; that is, by applying a negotiated fee onto the costs of the services performed. All significant intercompany balances and transactions are eliminated in consolidation.

              The following tables set forth summarized financial information concerning our reportable segments:

Reportable Segments

		Fiscal Year Ended
		September 27, 2015			September 28, 2014			September 29, 2013
		(in thousands)
Revenue
WEI		$	938,469		$	946,849		$	963,592
RME			1,342,889			1,406,885			1,389,711
RCM			86,575			221,108			305,821
Elimination of inter-segment revenue			(68,612	)		(91,028	)		(45,369	)
Total revenue		$	2,299,321		$	2,483,814		$	2,613,755
Operating Income
WEI		$	92,920		$	93,972		$	59,924
RME			93,581			84,743			74,796
RCM			(8,614	)		(45,151	)		(24,986	)
Corporate (1)			(90,203	)		20,269			(89,516	)
Total operating income		$	87,684		$	153,833		$	20,218
Depreciation
WEI		$	4,763		$	5,627		$	7,918
RME			13,914			14,764			15,295
RCM			1,801			2,958			3,280
Corporate			2,632			3,103			3,055
Total depreciation		$	23,110		$	26,452		$	29,548
(1)	Includes goodwill and intangible assets impairment charges, amortization of intangibles, other costs and other income not allocable to segments. The impairment charges of $60.8 million and $56.6 million for fiscal 2015 and 2013, respectively, were recorded at Corporate. The intangible asset amortization expense for fiscal 2015, 2014 and 2013 was $20.2 million, $27.3 million and $32.4 million, respectively. Corporate results also included income for fair value adjustments to contingent consideration liabilities of $3.1 million, $58.7 million and $9.6 million for 2015, 2014 and 2013, respectively.

		September 27, 2015		September 28, 2014
		(in thousands)
Total Assets
WEI		$	267,576	$	302,877
RME			441,662		442,911
RCM			57,612		100,996
Corporate (1)			792,392		929,620
Total assets		$	1,559,242	$	1,776,404
(1)	Corporate assets consist of intercompany eliminations and assets not allocated to segments including goodwill, intangible assets, deferred income taxes and certain other assets.

Geographic Information

		Fiscal Year Ended
		September 27, 2015				September 28, 2014				September 29, 2013
		Revenue		Long-Lived Assets (2)		Revenue		Long-Lived Assets (2)		Revenue		Long-Lived Assets (2)
						(in thousands)
United States		$	1,734,439	$	61,526	$	1,840,129	$	61,940	$	1,915,780	$	76,229
Foreign countries (1)			564,882		32,230		643,685		38,576		697,975		41,500
(1)	Includes revenue generated from our foreign operations, primarily in Canada, and revenue generated from non-U.S. clients. Long-lived assets consist primarily of amounts from our Canadian operations.
(2)	Excludes goodwill and other intangible assets.

Major Clients

              Other than the U.S. federal government, we had no single client that accounted for more than 10% of our revenue. All of our segments generated revenue from all client sectors.

              The following table presents our revenue by client sector:

		Fiscal Year Ended
		September 27, 2015		September 28, 2014		September 29, 2013
		(in thousands)
Client Sector
International (1)		$	564,882	$	643,649	$	697,975
U.S commercial			736,815		713,266		693,677
U.S. federal government (2)			709,600		772,290		829,790
U.S. state and local government			288,024		354,609		392,313
Total		$	2,299,321	$	2,483,814	$	2,613,755
(1)	Includes revenue generated from foreign operations, primarily in Canada, and revenue generated from non-U.S. clients.
(2)	Includes revenue generated under U.S. federal government contracts performed outside the United States.